Previous   Next
HomeBusinessAmazon Misrepresented To CCI: Future Retail

Amazon Misrepresented To CCI: Future Retail

Future Retail Ltd’s (FRL) Independent Directors have written a second letter to the Competition Commission of India (CCI), and this time with proof. FRL’s directors have disclosed new documents in a letter to the country’s antitrust watchdog citing Amazon always wanted to invest in FRL, but couldn’t, due to FDI restrictions on retail entities.

The email added that the restrictions arising out of the 2018 Press Note 2 notification prohibited e-commerce marketplaces from exercising ownership or control over sellers’ inventory on their platform. This led to a change in the investment structure, with Amazon investing in a twin-entity investment structure, through Future Coupons.

The email between Rakesh Bakshi, Head, legal and assistant general counsel, Amazon India, and Jeff Bezos reveals the startling details on how Amazon viewed and planned to enforce its agreements, the letter claimed. It said Bakshi’s email stated that due to foreign investment policy restrictions, Amazon will use a “twin-entity investment” structure to invest in FRL.

While at the point of the deal, Amazon had stated that it intended to invest in FCPL because of its “unique business model and strong growth potential”, FRL asserts that it was never the case. The independent directors alleged that Amazon determined the price paid for the FCPL shares based on FRL’s valuation.

In September 2019, Amazon informed the CCI that it had proposed to acquire 49% stakes in Future Coupons. The deal had reportedly also mentioned a list of 30 entities with whom the Future Coupons could not transact, including Reliance Retail, a subsidiary of Reliance Industries Limited.

While the restraint was on Future Coupons, Future Coupons owns 7.3% shares in Future Retail. Through this transaction, Amazon had also managed to acquire around a 3.58% stake in Future Retail — the business that is set to be acquired by Reliance Retail.

Aiming to bolster their case against Amazon, FRL seeks to revoke the 2019 deal between the US e-commerce major and Future Coupons. This will eventually lead to making void Amazon’s case against Future Group.

Not only will it result in the cancellation of CCI approvals given for Amazon’s all transactions with Future Group, but it will also commensurate fines and penalties by ED and other enforcement bodies.


Please enter your comment!
Please enter your name here

More News

अबतक 280 लोगों की मौत 1000 से ज्यादा घायल । ओडिशा के बालासोर में 3 ट्रेनों की भीषण टक्कर

ओडिशा के बालासोर में शुक्रवार की शाम में हुए ट्रेन हादसों में अबतक 280 लोग मारे गए तो वहीं 1000 के करीब घायल हैं।...

ओडिशा के बालासोर में बड़ा रेल हादसा, 30 लोगों की मौत 179 लोग बुरी तरह जख्मी

ओडिशा के बालासोर में शुक्रवार शाम करीब 6:51 बजे बड़ा ट्रेन हादसा हो गया. यहां बहनागा स्टेशन के पास कोरोमंडल एक्सप्रेस (12841) और मालगाड़ी...

बृजभूषण की जनचेतना महारैली को जिला प्रशासन की अनुमति नही

कैसरगंज के सांसद बृजभूषण शरण सिंह ने 5 जून को जनचेतना महारैली करने का आवाहन किया है। जिसकी उल्टी गिनती शुरू हो गई है।...


Keep Your Money Safe, Jeff Bezos Warns Economic Recession

Amazon founder Jeff Bezos recently warned consumers and businesses that they should consider postponing large purchases during the holiday season as an economic recession...

G20 Presidency Is A Proud Occasion For Every Indian: PM Modi

Indonesia President Joko Widodo handed over the G20 Presidency to India at the closing ceremony of the 17th intergovernmental summit in Bali on Wednesday....

Unmanned Trains Will Run Soon In India

Bharat Electronics Ltd (BEL) has signed an agreement with Delhi Metro Rail Corporation Ltd (DMRC) to jointly develop an indigenous communication-based train control system...